Stockholm for less ... Grill offers chic dining with a pricetag you can stomach

The self-declared capital of Scandinavia is equal parts confident elder brother and shy new boy in class. Stylish? Most certainly. Great for those on a budget? Not always. Although Stockholm does not even figure in Mercer's top 50 most expensive cities, so its reputation appears somewhat unjustified. I met up with local blogger Anna Östman for a tour of her local haunts in hipster Sodermalm, with its thriving cafe and bar culture, and refined Ostermalm, before heading off to explore more of the city's best budget-friendly hangouts.

1. Gildas Rum, Sodermalm

The counter disappears under piles of cakes, buns and jam tarts, and coffee is served in anything from pretty chinaware with broken handles to serious white mugs. Deep red walls and velvet sofas clash magnificently with multi-coloured fairy lights, explosions of flowers in tabletop pots and dripping chandeliers. It shouldn't work but it does and you'll find yourself slipping into a reverie pretty quickly while the carrot cake near your fork softly calls "eat me".

2. Café String, Sodermalm

If you'd like to purchase a table with your coffee, then you may want to consider a latte in String. The glass-fronted cafe spells out its trendy credentials with a black and white chessboard floor, eclectic, colourful furnishings and a young clientele who look like they've stepped out of a Whyred catalogue. You, too, can buy into the beauty by purchasing any of the furniture that takes your fancy. The cafe flexes its cultural muscles with regular poetry meetings, theatre performances and gigs by upcoming artists. But despite its arty attitude, it's also a great place to simply sit and people watch from its huge windows.

3. Akkurat, Sodermalm

Among all the dark wood and glistening bronze in Akkurat there lurk around 400 types of whisky and 200 beers, although they are rotated so frequently it's easy to lose count. The low lighting and soft murmuring of punters adds to the reverent air. If a monk walked through the crowd carrying some hops he wouldn't seem out of place, because the Trappist ales are an Akkurat speciality – everything from the 4.5% Chimay Doree to the 11.3% Rochefort 10. To avoid toppling off one of the very tall bar stools, I went for a USA brewed Brother Thelonius (9%) and chose a cheeseburger from the bar menu which embraced ribs, steak and fish and chips with gusto.

4. Koh Phanagan, Sodermalm

Swedes love Thailand and at Koh Phanagan some enthusiastic souls have basically created a full moon party without the sand. Even if you go in for lunch, the lighting is a deep navy blue, with twinkling bulbs weaving in and out of makeshift beach canopies. "I think," said Spotted by Locals' tipper Anna Ostram, who brought me to this slice of Thailand, "we should sit in the tuk-tuk." I avoided the Moo Pat King (seriously hot) and ordered the Nua Nam Man Hoi – beef, vegetables, oyster sauce (not hot). The restaurant doesn't take reservations so expect to queue on a Saturday night.

5. Snotty Sounds Bar, Sodermalm

The Sodermalm district has long been home to musicians and creative typres. In Snotty's there's a touch of the Seventies in the sculpted stools and smooth bar with its stripy wood grain while music posters and album covers pack the walls with distractions. Despite sitting on the uber-hip Skanegatan, Snotty's manages to keep its feet on the ground. Order a no-nonsense beer and hang out.

6. Pet Sounds Bar, Sodermalm

In Pet Sounds, the record store, there is vinyl. A lot of it. So it's logical that in Pet Sounds Bar the music is the reason people come. The bar houses regular DJ nights with a bent towards indie rock but it remains refreshing in its acceptance of anything that is good. Black butchers' tiles nudge the interior towards 80s territory but the funky lighting and walls full of music posters save the day.

7. Ljunggrens, Sodermalm

Admittedly, drinking in a shopping mall is a bit weird. Especially after hours, when all opportunities for retail therapy are closed off. But that's part of Ljunggrens charm – the low lighting making you feel as if you've broken in with a few friends for an illicit drinking session. Having said that, the giant glitter ball coupled with the industrial architecture also lends a certain theatrical nature to proceedings which can be quite dangerous after a few drinks. In the summer it is a favourite with Stockholmers for the view from its roof terrace.

8. The Blue Lotus Café, Sodermalm

Entering the subterranean Blue Lotus from the freezing streets of Stockholm is like walking into a blast furnace filled with humus and curry spice. The effect is instantly warming and you could easily spend an afternoon chatting in one of the cosy corners. The cafe has a lot of vegetarian and organic options on the menu and its decor nods towards India with a jewelled colour theme and ornate wall hangings serving as decorative archways. Move into one of the two anterior rooms and the lack of windows allows you to forget the snow and indulge in an Indian summer.

• Katarina Bangata 21. Sandwiches from £4.60

9. Grill, Ostermalm

Nowhere is style embraced quite so enthusiastically than in Grill, where each room is decorated in a different theme – from a chintzy, turn-of-the-century parlour to an outdoor Italian bistro. When it's busy, you have no say as to where you sit – so if you have a thing against Colorado ski chalets, you may want to look elsewhere. Is the menu cheap? Not really – mains start at £16 – but everything on the menu is grilled (hence the name) to perfection, which when coupled with your surroundings makes for a quirky and tasty evening.

10. Le Bar Rouge, Old Town

Oh I know it's the old town and if you don't want to look like a tourist you walk quickly around those cobbled streets pretending you don't think it's pretty and head straight into Sodermalm. But Bar Rouge is an exception. Decked out like a turn-of-the-century boudoir, the red lighting and velvet seats capture decaying opulence in a way staring at the nearby Royal Palace for 30 minutes certainly won't. The tipple of choice is cocktails – frankly anything else wouldn't be nearly bourgeois enough. If you're on a budget, avoid the adjoining restaurant but the bar snacks are reasonable at around SEK50 (£4.60).